Certified Internet Web (CIW) Professional Practice Exam

What term describes a business model where companies use hosted solutions with a subscription fee?

1. Software as a Service

2. Scalability

3. Crowdsourcing

4. Grid computing

The correct answer is: Software as a Service

The term that describes a business model in which companies utilize hosted solutions with a subscription fee is Software as a Service (SaaS). This model allows users to access software applications over the internet rather than requiring them to install and maintain the software on local devices. With SaaS, customers typically subscribe to the service, paying a recurring fee, which can include access to updates, support, and scalability options. This model has become increasingly popular due to its flexibility and cost-effectiveness, allowing businesses to use advanced software without significant upfront investment in infrastructure. The hosted nature of SaaS means that all software and data are managed on remote servers, thereby reducing maintenance burdens for the business. In contrast, scalability generally refers to a system's ability to handle increased load or demand and is not specifically tied to the subscription-based model of software delivery. Crowdsourcing involves obtaining information or services from a large group of people, often via the internet, and does not pertain to hosted software solutions. Grid computing is a distributed computing concept that combines resources from multiple computers to work on large tasks but does not specifically relate to subscription-based services.